Abstract
Domestic servants and a woman's own time are substitutes in the household production process. The demand for servants increases with the woman's market wage, her non-wage income, and the presence of young children in the family. A bivariate probit model using data from Hong Kong suggests that women who participate in the labor force have a 0.008 higher probability of having servants than women who are not in the labor force. Conversely, women who have servants have a 0.22 higher probability of labor force participation than women with no servants. In households that use market-procured domestic help, the presence of young children is found to have no negative effect on female labor force participation.
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